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''Managing Human Resources '' Success of an Organization is determined by evaluation of its Stakeholders Stakeholders are individuals or groups with interests, rights, or ownership in an organization and its activities. Examples of Stakeholder Concern: Organization Members- Good Pay and benefits, Good quality of life, long-term employability Owners and Investors- Financial returns, Corporate reputation, long-term survival Society- Legal compliance, social responsibility, ethical Other Organizations- Reliability, Trustworthy Customers- Quality, speed/responsiveness, low prices Human Resource Practices Staffing, Training, and Development Over time these practices give an organization: culture (personality) tradition (history) and rules and regulations (a set of values) Human Resources Department or Functional AreaThe HR Department or Functional Area is an operating unit within an organization. Human Resource Professionals People working full-time in human resource roles Generalists (employee relations, strategic partnership with line managers) Specialists (compensation, training, etc.)Managers and Executives The Minnesota Human Resources & Industrial Relations model (HRIR model) 1. Staffing, Training & Development 2. Organizational Behavior & Theory 3. Compensation & Benefits 4. Labor Market Analysis 5. Labor-Management Relations 6. Quantitative Methods7. Computer Literacy Five Challenges for Line & HR Managers 1. Globalization The following four global challenges all have a significant impact on people management. 1. World Trade 2. Globalization of Markets- Decline in trade barriers, technological change 3. Globalization of Production- Variation in cost of land, labor etc.4. China and WTO 2. Profitability through efficiency 1. Internal efficiency 2. New customers, products and services 3. Pressures on organization and people to be creative and innovative 4. Free flow of information and shared learning among employees5. Acquiring skills to integrate different work processes and cultures 3. Technological Change 1. Information technology 2. Internet and Worldwide Web 3. Smaller and faster world4. Making technology a productive part of the work setting 4. Intellectual Capital 1. Attracting, developing and retaining people 2. Right kind of employees 3. Right number 4. Right time 5. Making organizations adapt to technological change and responsive to customers6. Creating a global mindset 5. Dynamic Economic & Social Environments 1. Developing abilities in organizations to embrace and adapt rapidly to the changing economic environment 2. Require abilities to learn and acquire new knowledge and skills continuously3. Developing organizational capability Seven Key Success Factors 1. Who is responsible? (Leadership) 2. Why do it? (“Shared” need to do it) 3. What change will bring? (Develop a vision) 4. Who will be involved? (Secure commitment from all constituencies) 5. How will it be institutionalized? (Link to all HR functions) 6. How will it be measured? (Benchmarking & monitoring)7. How will change get started & be sustained? (Plans to adapt to changes over time) Porter’s Business Strategies- Segmentation Strategy, Differentiation Strategy, Cost Leadership 1. Cost Leadership (Dell, Wal-Mart) Tight cost control frequent, detailed reports Structured organization and responsibilities Incentives based on meeting strict quantitative targets 2. Differentiation (Rolex, Caterpillar, Häagen-Dazs) Strong coordination among R&D, product development and marketing Subjective measurement and incentives vs. quantitative Attract highly skilled, scientists, creative people 3. Focus (Southwest Airlines, Porsche) Combination directed at particular strategic targetConcentration on certain niche. 3 Ways HR Contributes to Organizational Performance 1. Through delivery of sound functional basics (compensation, training, recruiting) 2. Through effective realignment when the external environment changes3. By building an organizational context so that the organization can cope with the dualistic forces that it confronts. 5 themes in Management 1. Managing Teams 2. Managing the multicultural workforce 3. Managing globalization 4. Managing ethics 5. Managing with metrics Chapter 14 Chapter 2